Choose the correct answer and show your solution.

QUANTITATIVE METHODS

1. Clerks A, B, and C process 50%, 20%, and 30% of the sales orders, respectively. The percentage of errors made in processing a sales order by Clerks A, B, and C are 2%, 5%, and 10%, respectively. A sales order is audited and found to be in error. What is the probability that this invoice was processed by Clerk C?

a. 0.30

b. 0.60

c. 0.10

2. The Motion Company has decided to introduce a new product. The company estimates that there is a 30 percent probability that the product will contribute P700,000 to profits, a 30 percent probability that it will contribute P200,000, and a 40 percent probability that the contribution will be a negative P400,000. The expected contribution of the new product is

a. P500,000

b. P166,667

d. P380,000